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We investigate the application of two heuristic methods, genetic algorithms and tabu/scatter search, to the optimisation of realistic portfolios. The model is based on the classical mean-variance approach, but enhanced with floor and…

Other Condensed Matter · Physics 2008-12-02 Franco Busetti

In matter of Portfolio selection, we consider a generalization of the Markowitz Mean-Variance model which includes buy-in threshold constraints. These constraints limit the amount of capital to be invested in each asset and prevent very…

Computational Engineering, Finance, and Science · Computer Science 2016-11-18 Hoai An Le Thi , Mahdi Moeini

We study the problem of instance segmentation in biological images with crowded and compact cells. We formulate this task as an integer program where variables correspond to cells and constraints enforce that cells do not overlap. To solve…

Computer Vision and Pattern Recognition · Computer Science 2017-09-22 Chong Zhang , Shaofei Wang , Miguel A. Gonzalez-Ballester , Julian Yarkony

Choosing a portfolio of risky assets over time that maximizes the expected return at the same time as it minimizes portfolio risk is a classical problem in Mathematical Finance and is referred to as the dynamic Markowitz problem (when the…

Mathematical Finance · Quantitative Finance 2020-01-20 Gabriela Kováčová , Birgit Rudloff

Optimal capital allocation between different assets is an important financial problem, which is generally framed as the portfolio optimization problem. General models include the single-period and multi-period cases. The traditional…

Portfolio Management · Quantitative Finance 2019-03-18 Masoud Fekri , Babak Barazandeh

The portfolio optimization problem is a critical issue in asset management and has long been studied. Markowitz's mean-variance model has fundamental limitations, such as the assumption of a normal distribution for returns and sensitivity…

Statistical Mechanics · Physics 2025-10-28 Keita Takahashi , Tetsuro Abe , Yasuhito Nakamura , Ryo Hidaka , Shuta Kikuchi , Shu Tanaka

We propose to solve large scale Markowitz mean-variance (MV) portfolio allocation problem using reinforcement learning (RL). By adopting the recently developed continuous-time exploratory control framework, we formulate the exploratory MV…

Portfolio Management · Quantitative Finance 2019-08-05 Haoran Wang

A continuous-time financial portfolio selection model with expected utility maximization typically boils down to solving a (static) convex stochastic optimization problem in terms of the terminal wealth, with a budget constraint. In…

Portfolio Management · Quantitative Finance 2022-01-07 Hanqing Jin , Zuo Quan Xu , Xun Yu Zhou

Since Markowitz's mean-variance framework, optimizing a portfolio that maximizes the profit and minimizes the risk has been ubiquitous in the financial industry. Initially, profit and risk were measured by the first two moments of the…

Signal Processing · Electrical Eng. & Systems 2023-09-12 Xiwen Wang , Rui Zhou , Jiaxi Ying , Daniel P. Palomar

This paper studies a robust continuous-time Markowitz portfolio selection pro\-blem where the model uncertainty carries on the covariance matrix of multiple risky assets. This problem is formulated into a min-max mean-variance problem over…

Portfolio Management · Quantitative Finance 2017-03-14 Amine Ismail , Huyên Pham

Recent advances in quantum hardware offer new approaches to solve various optimization problems that can be computationally expensive when classical algorithms are employed. We propose a hybrid quantum-classical algorithm to solve a dynamic…

Quantum Physics · Physics 2023-03-23 H. Xu , S. Dasgupta , A. Pothen , A. Banerjee

This paper considers generalized linear models using rule-based features, also referred to as rule ensembles, for regression and probabilistic classification. Rules facilitate model interpretation while also capturing nonlinear dependences…

Machine Learning · Computer Science 2019-06-06 Dennis Wei , Sanjeeb Dash , Tian Gao , Oktay Günlük

Column generation (CG) is a powerful technique for solving optimization problems that involve a large number of variables or columns. This technique begins by solving a smaller problem with a subset of columns and gradually generates…

Neural and Evolutionary Computing · Computer Science 2024-07-03 Hongjie Xu , Yunzhuang Shen , Yuan Sun , Xiaodong Li

We survey optimization problems that involve the cardinality of variable vectors in constraints or the objective function. We provide a unified viewpoint on the general problem classes and models, and give concrete examples from diverse…

Optimization and Control · Mathematics 2022-08-09 Andreas M. Tillmann , Daniel Bienstock , Andrea Lodi , Alexandra Schwartz

Numerous communication networks are emerging to serve the various demands and improve the quality of service. Heterogeneous users have different requirements on quality metrics such as delay and service efficiency. Besides, the networks are…

Data Structures and Algorithms · Computer Science 2022-11-11 Ziye Jia , Qihui Wu , Chao Dong , Chau Yuen , Zhu Han

We consider the optimization of active extension portfolios. For this purpose, the optimization problem is rewritten as a stochastic programming model and solved using a clever multi-start local search heuristic, which turns out to provide…

Portfolio Management · Quantitative Finance 2014-07-01 Ronald Hochreiter , Christoph Waldhauser

This paper studies mean-risk portfolio optimization models using the conditional value-at-risk (CVaR) as a risk measure. We also employ a cardinality constraint for limiting the number of invested assets. Solving such a…

Optimization and Control · Mathematics 2020-08-10 Ken Kobayashi , Yuichi Takano , Kazuhide Nakata

Motivated by recent advances in the spectral theory of auto-covariance matrices, we are led to revisit a reformulation of Markowitz' mean-variance portfolio optimization approach in the time domain. In its simplest incarnation it applies to…

Portfolio Management · Quantitative Finance 2016-06-22 Peter A. Bebbington , Reimer Kuehn

Column generation is used alongside Dantzig-Wolfe Decomposition, especially for linear programs having a decomposable pricing step requiring to solve numerous independent pricing subproblems. We propose a filtering method to detect which…

Discrete Mathematics · Computer Science 2025-09-05 Abdellah Bulaich Mehamdi , Mathieu Lacroix , Sébastien Martin

Column generation is often used to solve multi-commodity flow problems. A program for column generation always includes a module that solves a linear equation. In this paper, we address three major issues in solving linear problem during…

Optimization and Control · Mathematics 2019-03-19 Liyun Dai , Hengjun Zhao , Zhiming Liu